OTTAWA, ONTARIO--(Marketwired - June 11, 2016) - Outsourcing is costing the federal government money, jobs, morale, accountability and productivity, according to "Programmed to Fail," a new report released by the Professional Institute of the Public Service of Canada (PIPSC).
"Canadians are paying a heavy price for outsourcing," said PIPSC president Debi Daviau. "Outsourcing removes much-needed expertise from the public service, gives rise to more, not fewer, management problems and leads to an unproductive dependence on outside consultants. It costs Canadian taxpayers billions of dollars each year. It works against growth of the middle class and promotes insecure, part-time contract jobs without benefits over permanent, full-time jobs with benefits."
The report found that nearly half of PIPSC members were aware of contractors in their team or work unit. Nearly 60% said contracts in their team or work unit are routinely renewed, 41% reported contractors present for periods between 1 to 5 years, and 17% reported contractors present for over 10 years.
The cumulative annual cost of outsourcing to taxpayers is now over $10 billion, approximately $8 billion of which is spent on private contractors.
"Programmed to Fail" recommends that the government adopt a more aggressive strategy of "insourcing" and implement a consistent approach to adequately tracking and reporting the numbers of contracted workers it employs.
"Negotiating and administering a few dozen collective agreements is much better than negotiating and administering tens of thousands of individual contracts," said Daviau. "Unless the government changes course soon, Canada is at risk of employing a permanently precarious public service."
PIPSC represents some 55,000 public-sector scientists and other professionals across the country, most of them employed by the federal government.
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